Hasbro (HAS – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst James Hardiman from Citi maintained a Hold rating on the stock and has a $75.00 price target.
James Hardiman has given his Hold rating due to a combination of factors related to Hasbro’s strategic initiatives and market positioning. The company’s ‘Playing to Win’ strategy, which extends through 2027, aims at enhancing both sales and profit margins, primarily through the growth of the Wizards of the Coast segment and margin improvements in Consumer Products. However, the success of these initiatives, particularly the launch of new AAA video game IPs, remains uncertain and difficult to predict.
Despite a strong Q4 performance and an encouraging outlook for 2025, there are questions about the synergies between Hasbro’s different business segments. The potential for unlocking value through a split of these segments is a topic of consideration. Moreover, while the anticipated launch of the Exodus franchise in 2026 could significantly impact Hasbro’s valuation, the current flat stock performance over the past decade suggests that immediate gains are not guaranteed. These uncertainties contribute to the Hold rating, as the stock’s future performance hinges on the successful execution of these strategic plans.